TOLEDO, Ohio, Nov. 11, 2019 /PRNewswire/ -- Welltower Inc.
(NYSE: WELL) today announced that it has entered into a definitive
agreement under which Welltower will acquire a 29-property Class-A
medical office building portfolio from Hammes Partners ("Hammes")
for $787 million.
Separately, Welltower announced an additional gross investment
volume of $885 million across four
separate outpatient medical transactions which are currently under
contract at a blended year one cash cap rate of 5.4%. With these
announcements, Welltower has closed or announced over $3.5 billion of outpatient medical acquisitions
this year at a blended year one cash cap rate of 5.6%. These
acquisitions will contribute 450 properties and over 8 million
square feet to the Company's platform, as it continues to expand
through accretive off-market acquisitions.
"Today's acquisition announcement exemplifies our unique ability
to source and execute on high quality growth opportunities from
best-in-class developers and operators," commented Thomas J. DeRosa, Welltower's Chairman and CEO.
"These transactions establish Welltower as the largest commercial
owner of medical office real estate in the country, with a platform
approaching 30 million square feet. We continue to upgrade the
quality of our portfolio and align ourselves strategically with
leading not-for-profit health systems"
Hammes Acquisition
The transaction with Hammes
follows the $391 million purchase
that Welltower closed in December of 2018. This 1.5 million square
foot Class-A portfolio has an average age of 10 years, with 12
years of weighted average lease term and 2.2% average annual rent
increases. The transaction is scheduled to close in the fourth
quarter of 2019.
The portfolio's assets are concentrated in the New York and Boston MSAs along with other
dense population centers in Massachusetts, California, Texas and Maryland. With an economic occupancy of 97%,
the portfolio is affiliated with Baylor
Scott & White, Providence St. Joseph, Trinity Health,
Medstar and other not-for-profit health systems and multi-specialty
physician groups. A significant portion of the portfolio has
absolute net recoveries and, in combination with the long lease
term, will generate significant after capex cash flow growth for
Welltower shareholders.
Year-to-Date 2019 Total Investment Activity
In
its third quarter earnings release, Welltower announced
$3.0 billion in closed year-to-date
pro rata acquisition volume and post-quarter gross acquisition
activity of $594
million(1) across three transactions. With
today's announcement of the Hammes portfolio acquisition for
$787 million and the additional
$885 million(2) of
outpatient medical acquisitions under contract, the Company is
pleased to have closed or announced year to date pro rata total
investment activity of $5.2
billion(3) at a yield of 5.5%.
A presentation with additional background on these announcements
will be accessible on the investor section
of Welltower's website.
Forward-Looking Statements and Risk Factors
This press release contains "forward-looking statements" as defined
in the Private Securities Litigation Reform Act of 1995. When we
use words such as "may," "will," "intend," "should," "believe,"
"expect," "anticipate," "project," "pro forma," "estimate" or
similar expressions that do not relate solely to historical
matters, we are making forward-looking statements. In particular,
these forward-looking statements include, but are not limited to,
those relating to our opportunities to acquire, develop or sell
properties; our ability to close anticipated acquisitions,
investments or dispositions on currently anticipated terms, or
within currently anticipated timeframes; the expected performance
of our operators/tenants and properties; our expected occupancy
rates; our ability to declare and to make distributions to
shareholders; our investment and financing opportunities and plans;
our continued qualification as a REIT; our ability to access
capital markets or other sources of funds; and our ability to meet
our earnings guidance. Forward-looking statements are not
guarantees of future performance and involve risks and
uncertainties that may cause our actual results to differ
materially from our expectations discussed in the forward-looking
statements. This may be a result of various factors, including, but
not limited to: the status of the economy; the status of capital
markets, including availability and cost of capital; issues facing
the health care industry, including compliance with, and changes
to, regulations and payment policies, responding to government
investigations and punitive settlements and operators'/tenants'
difficulty in cost-effectively obtaining and maintaining adequate
liability and other insurance; changes in financing terms;
competition within the health care and seniors housing industries;
negative developments in the operating results or financial
condition of operators/tenants, including, but not limited to,
their ability to pay rent and repay loans; our ability to
transition or sell properties with profitable results; the failure
to make new investments or acquisitions as and when anticipated;
natural disasters and other acts of God affecting our properties;
our ability to re-lease space at similar rates as vacancies occur;
our ability to timely reinvest sale proceeds at similar rates to
assets sold; operator/tenant or joint venture partner bankruptcies
or insolvencies; the cooperation of joint venture partners;
government regulations
affecting Medicare and Medicaid reimbursement
rates and operational requirements; liability or contract claims by
or against operators/tenants; unanticipated difficulties and/or
expenditures relating to future investments or acquisitions;
environmental laws affecting our properties; changes in rules or
practices governing our financial reporting; the movement of U.S.
and foreign currency exchange rates; our ability to maintain our
qualification as a REIT; key management personnel recruitment and
retention; and other risks described in our reports filed from time
to time with the Securities and Exchange Commission. Finally,
we undertake no obligation to update or revise publicly any
forward-looking statements, whether because of new information,
future events or otherwise, or to update the reasons why actual
results could differ from those projected in any forward-looking
statements.
About Welltower
Welltower Inc. (NYSE: WELL), an
S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of
health care infrastructure. The Company invests with leading
seniors housing operators, post-acute providers and health systems
to fund the real estate infrastructure needed to scale innovative
care delivery models and improve people's wellness and overall
health care experience. Welltower®, a real estate investment trust
("REIT"), owns interests in properties concentrated in major,
high-growth markets in the United
States, Canada and the
United Kingdom, consisting of
seniors housing, post-acute communities and outpatient medical
properties. More information is available at www.welltower.com.
About Hammes
Hammes Company has been ranked as a leading healthcare facility
developer for 21 years by Modern Healthcare's Construction and
Design Survey. Hammes has managed in excess of 57 million square
feet of complex new, expansion, renovation, replacement, ambulatory
care and acute care projects with a value of more than $23 billion for hospitals and health systems
nationwide. The company has extensive experience managing the
planning, financing, development, construction, leasing and
management of non-acute and acute healthcare facilities. Hammes has
helped many of the nation's leading healthcare organizations plan,
implement and manage facility strategies and solutions for more
than a quarter of a century. The company delivers measurable
results that help healthcare providers grow while meeting the
unique health and wellness needs of their communities.
Headquartered in Milwaukee,
Wisconsin, Hammes provides services through a network of
regional offices strategically located across the United States.
- Investments structured as DownREIT shown at 100%. Pro rata
amount is $463 million
- Investments structured as DownREIT shown at 100%. Pro rata
amount is $662 million
- Represents 3Q19 YTD pro rata acquisition amount and announced
and closed acquisition amounts subsequent to quarter end structured
as DownREIT at 100% ownership. Total pro rata investment amount is
$4.9 billion
View original content to download
multimedia:http://www.prnewswire.com/news-releases/welltower-expands-outpatient-medical-platform-through-acquisition-of-hammes-and-4-other-transactions-of-class-a-properties-totaling-1-7-billion-300955799.html
SOURCE Welltower Inc.